Tags: Gold | Gains | Stocks | Tumble

Gold Extends Recent Gains as Stocks Tumble

Thursday, 10 Apr 2014 05:45 PM

Gold prices advanced Thursday, boosted by a sharp pullback in U.S. equities and follow-through buying a day after minutes from the Federal Reserve's latest policy meeting revealed its cautious approach in future interest-rate hikes.

U.S. Comex gold futures for June delivery settled up $14.60 at $1,320.50 an ounce, with trading volume about 35 percent below its 30-day average, preliminary Reuters data showed.

Spot gold was up 0.6 percent at $1,319.65 an ounce by 2:52 p.m. in New York, having earlier hit $1,324.40, its highest since March 24.

Gold came uncoupled in the afternoon from U.S. equities, stalling even as the S&P 500 index accelerated losses.

The yellow metal largely ignored data signaling a stronger U.S. job market, with the number of Americans filing new applications for unemployment benefits tumbling last week to the lowest level in nearly seven years.

Analysts said gold buying accelerated following Wednesday's Fed minutes, which showed officials fretted last month that investors would overreact to policymakers' fresh forecasts on interest rates that appeared to map out a more aggressive cycle of rate hikes than was actually anticipated.

"It changed the dynamic of the gold market because now the fear of Fed raising rates has been pushed back further into the future," said Phillip Streible, senior commodities broker at RJ O'Brien.

Gold prices had come under pressure, falling to a seven-week low of $1,277.90 on April 1, on signs that strong U.S. economic data could prompt further dollar strengthening and comments from Fed Chair Janet Yellen on March 19 that interest rates could rise in the first half of 2015.

On Thursday, U.S. 10-year Treasury yields dropped toward 2.6 percent. Returns from U.S. bonds are closely watched by the gold market, given that the metal pays no interest.

Prices in top buyer China slipped back to a discount of about $2 an ounce on London prices on Thursday from a premium in the previous session.

Also reflecting weak physical demand, gold stocks sitting in U.S. exchange warehouses are at a 10-month high.

 

Among other precious metals, silver rose 1.1 percent to $20.07 an ounce. Platinum rose 1.4 percent to $1,455 an ounce, having earlier reached a three-week high of $1,459 an ounce and palladium gained 1.3 percent to $788.50 an ounce.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Markets
Gold prices advanced Thursday, boosted by a sharp pullback in U.S. equities and follow-through buying a day after minutes from the Federal Reserve's latest policy meeting revealed its cautious approach in future interest-rate hikes.
Gold, Gains, Stocks, Tumble
374
2014-45-10
Thursday, 10 Apr 2014 05:45 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved